mass layoffs at blizz

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37 Gnome Warlock
280
Dreary -

In turn you completely fail to take into the consideration and factors of the total-world economic turn-down which (non coincidentally) have been occurring during these stated times of lost subscriptions. Which do you think is a more viable and pressing reason to cancel a subscription? Because you don't like the product or because you simply can't afford it. The former at least still allows for a choice; the latter....... NONE.
Edited by Gildersneeze on 11/8/2011 8:42 AM PST
85 Blood Elf Paladin
7555
People bounce around in the game business, it's the nature of the industry. If you think these people will be unemployed for long, you're wrong.
85 Blood Elf Paladin
8990
Dreary -

In turn you completely fail to take into the consideration and factors of the total-world economic turn-down which (non coincidentally) have been occurring during these stated times of lost subscriptions. Which do you think is a more viable and pressing reason to cancel a subscription? Because you don't like the product or because you simply can't afford it. The former at least still allows for a choice; the latter....... NONE.


The economic downturn started in 2008 and the first shakings started back in 2006.

LK launched back in 2008, I believe, and the expansion had record numbers of subs and brought in record amounts of sub income. Right up to the launch of Cataclysm.

From then on, the last year, they've lost 900k subs in the first six months of its lifespan.

If you've got a solid expansion doing record numbers in the MIDDLE of an economic downturn, you're not allowed to say 'economic downturn' when the next expansion sinks like a damned rock.
90 Undead Priest
10990
Dreary -

In turn you completely fail to take into the consideration and factors of the total-world economic turn-down which (non coincidentally) have been occurring during these stated times of lost subscriptions. Which do you think is a more viable and pressing reason to cancel a subscription? Because you don't like the product or because you simply can't afford it. The former at least still allows for a choice; the latter....... NONE.


I already addressed this in an earlier post but I forget what page. But as you should know the economic issues have been going on a long time, there was an economic meltdown in 08 when the housing market collapsed, and do you know where Blizzard's sub numbers went during that time... up.

One of the reasons for this is because $15 a month for entertainment is cheaper than going out, its basically the cost of going to the movies. The past indicates that WoW has done well during hard economic times, so when all of a sudden Cataclysm releases and people leave in droves, it's kinda hard for me to take you seriously when you blame it on the economy which has been bad for the past 3 years.
85 Night Elf Druid
5455
they've lost $15,000,000 a month in subs since cata launched with more expected to be announced later today.

they're not broke, but that is enough money to nearly cover all their wow server costs


Broke isn't the problem here.

Share price is based on current earnings and expected future earnings. Shareholders pay more for stock in companies that make more money, which is pretty obvious.

When earnings fall and, worse, forecasted earnings fall, the share price drops. This means investors lose money. Not just money if they sell the stock but potential earnings that they could have earned by buying another stock.

This upsets shareholders. That upsets the board. That upsets ActiBlizz management, who's bonouses are tied to share price for this reason.

So to get share price back up, companies have a cheap trick. They reduce expenditures. For some reason, this cheers up shareholders, who think the company is doing something. It may actually boost profit short-term but mostly the effect is psychological.

However, this is bad because often it's just not excess expense being cut. Often, these companies are slashing valuable staff and programs for a short-term share boost but its at the cost of long term profits. However, it protects the manager's bonouses, at least in the short term.
100 Human Priest
16705
Dreary -

In turn you completely fail to take into the consideration and factors of the total-world economic turn-down which (non coincidentally) have been occurring during these stated times of lost subscriptions. Which do you think is a more viable and pressing reason to cancel a subscription? Because you don't like the product or because you simply can't afford it. The former at least still allows for a choice; the latter....... NONE.


well according to everything i've seen on gtv, the internet, etc, gaming industry has INCREASED PROFITS during obama's presidency (the "depression")

people won't do without entertainment. it's why in late 2010, wow's subs peaked


I don't think it has to do with people not being able to go without their entertainment. I'd say it's more along the lines of escapism. Life is !@#$ now, games let you escape it, even if it's only a few hours a day. It's a few hours you don't have to think about your miserable existence.
45 Human Warlock
4855
Just gonna say, that blog got lot of traffic in 2 days....
If this rumor is true - I feel badly for the people being layed off. Stop speculating if it's because Cata was good or bad - it's called the Economy! Since alot of people who play, live with their parents, have part time jobs and go to school, there is this thing called the economy - it is tanking. Once again health care is screwed up causing small businesses to close (people losing jobs don't spend money on frivolous things like WoW. Also Activision is a corporation, there are insurances, workers comp, health insurance, salaries, taxes (both fed & state) then there is unemployment tax, rent, leases, mortgages, shareholders, etc. Need I go on. If they are laying people off is because right now our National Economy sucks balls! Most major corporations are holding their collective breath to see what the elections bring today - who is going to hold the majority in the congress and senate - that will set the stage for the coming months and years.

So to boil down if Cata sucked or not, really isn't the issue for lay-offs - it's about the cost of everything rising, taxes that have skyrocketed, everything from electricity to food has almost tripped in the last couple of years - so that is where the problem lies. Plus Blizz being awesome hasn't raised their rates - but everyone !@#$%es if they put a pet in the blizz store to create more revenue.
Edited by Gueneviere on 11/8/2011 8:49 AM PST
90 Orc Warlock
0
Guys, you can't compare leveling now to leveling in vanilla. there are 25 more levels and the time per level gets higher as you go up.

They had to make questing faster, otherwise leveling would take a very long time. And in fact, it still takes a LONG time. a super fast lvl 85 grind takes several days.

But the game just gets started when you hit max level. So, I don't understand the complaining

90 Orc Death Knight
16060
Why aren't any of those morons that kept saying "HERP A DERP losing 1 million subs doesn't really matter" in this thread.

100 Blood Elf Warrior
7735
11/08/2011 07:00 AMPosted by Ravenhawke
Fear mongering, plain and simple
90 Undead Priest
10990
11/08/2011 08:52 AMPosted by Omina
Why aren't any of those morons that kept saying "HERP A DERP losing 1 million subs doesn't really matter" in this thread.


They probably got distracted by a new game and unsubbed lol.
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